The SHANTI Bill and India’s Clean Energy Turning Point
For much of its post-independence history, India’s nuclear power programme has been defined by paradox. The country was an early entrant into nuclear science, built deep indigenous capabilities, and developed one of the world’s most sophisticated fuel-cycle ecosystems. Yet, despite this promise, nuclear power has remained a marginal contributor to India’s electricity mix—reliable, safe, but stubbornly small.
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 marks a decisive attempt to resolve this paradox. It is not merely a new law; it is a reset of India’s nuclear imagination. By modernising outdated statutes, aligning liability norms with global standards, and opening carefully calibrated space for private participation, the Bill offers India a second and potentially decisive shot at nuclear energy leadership.
A Legacy Built on Control, Not Scale
India’s nuclear journey was shaped as much by geopolitics as by science. The Atomic Energy Act of 1962 placed nuclear energy firmly under central government control, reflecting both security imperatives and the technological realities of the time. Over the decades, amendments allowed government-owned enterprises and joint ventures to expand generation capacity, but the sector remained largely insulated from market forces.
The Civil Liability for Nuclear Damage Act, 2010 further reinforced this insulation. Introduced after global nuclear incidents raised public concern, the law prioritised victim compensation and safety. However, by placing supplier liability outside global conventions, it unintentionally discouraged private and foreign participation. Nuclear projects became legally complex, financially risky, and slow to execute.
As a result, nuclear power stabilised at around 3% of India’s electricity generation—valuable for baseload stability, but far below its potential in a country with rising demand and ambitious climate goals.
Why Nuclear Power Matters More Than Ever
India’s energy challenge today is fundamentally different from the past. Rapid urbanisation, electrification of transport, data centres, green hydrogen production, and advanced manufacturing are driving demand for round-the-clock, clean, and reliable electricity.
Solar and wind power are essential, but they are intermittent. Storage solutions are improving but remain costly and scale-limited. Nuclear energy, by contrast, offers carbon-free baseload power with a small land footprint and high capacity utilisation.
If India is to meet its long-term commitments—net-zero emissions by 2070 and 100 GW of nuclear capacity by 2047—it needs a nuclear sector that can scale faster, attract long-term capital, and integrate innovation without compromising safety. That is the context in which the SHANTI Bill emerges.
The SHANTI Bill: What It Seeks to Change
One Law, Not Two
The SHANTI Bill repeals and integrates the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 into a single, comprehensive statute. This consolidation removes legal fragmentation, reduces interpretational uncertainty, and creates a clearer pathway for nuclear commerce, regulation, and safety.
Opening the Sector—Without Surrendering Sovereignty
One of the Bill’s most consequential features is the introduction of private sector participation across defined areas of the nuclear value chain. Indian private companies can now participate in:
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Nuclear power generation and plant operations
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Manufacturing of nuclear equipment and components
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Select fuel-cycle activities, within notified limits and under strict regulatory oversight
At the same time, the Bill draws clear red lines. Sensitive activities—such as spent fuel reprocessing, high-level radioactive waste management, and certain enrichment processes—remain exclusively with the Central Government or its wholly owned institutions. This dual structure balances economic efficiency with national security.
A Liability Framework That Enables Investment
Perhaps the most transformative reform lies in the Bill’s approach to civil liability. Instead of a uniform statutory cap, SHANTI introduces a graded liability framework, with limits varying based on the type and risk profile of nuclear installations.
Key features include:
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Alignment with global norms, including the 300 million SDR benchmark
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A Nuclear Liability Fund to supplement compensation
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Explicit recognition of terrorism as a sovereign risk, with government responsibility
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Expanded definitions of nuclear damage and faster claims processing
This approach restores predictability for investors while preserving strong victim compensation mechanisms—addressing one of the biggest barriers to nuclear expansion.
Strengthening Safety and Regulatory Independence
The Bill grants statutory status to the Atomic Energy Regulatory Board (AERB), reinforcing its independence and authority. All nuclear and radiation-related activities require prior safety authorisation, ensuring that expansion does not dilute safety standards.
Enhanced provisions for emergency preparedness, safeguards, quality assurance, and security coordination further strengthen public confidence in the sector.
Beyond Power: Enabling Nuclear Applications
The SHANTI Bill recognises that nuclear technology extends beyond electricity generation. It establishes a regulatory framework for nuclear and radiation applications in healthcare, agriculture, industry, and research. Limited exemptions for R&D encourage innovation while maintaining oversight for activities involving radiation exposure.
The SMR Moment: India’s Technological Opportunity
Complementing the SHANTI Bill is the Nuclear Energy Mission announced in the Union Budget 2025–26, with ₹20,000 crore allocated for Small Modular Reactors (SMRs). Indigenous designs such as the BSMR-200 and SMR-55 are already under development, with a target of deploying at least five SMRs by 2033.
SMRs are smaller, modular, faster to deploy, and well-suited for industrial clusters, remote regions, and grid balancing. If executed well, they could position India as both a large-scale user and exporter of next-generation nuclear technology.
This is where the SHANTI Bill’s importance multiplies—it provides the legal and institutional scaffolding needed for SMRs to move from laboratories to landscapes.
Why the SHANTI Bill Is So Important
The significance of the SHANTI Bill lies not in any single provision, but in the ecosystem it creates. It:
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Unlocks scale by crowding in private capital
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Reduces risk through predictable liability and licensing
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Preserves sovereignty while enabling global integration
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Supports innovation without compromising safety
Most importantly, it shifts India’s nuclear discourse from ideological caution to practical execution.
From Capability to Leadership
India’s first nuclear era was defined by scientific achievement and strategic autonomy. Its limitation was scale. The SHANTI Bill represents a second chance—more pragmatic, globally aligned, and economically grounded.
Whether this opportunity translates into leadership will depend on implementation: regulatory consistency, state-level cooperation, public engagement, and sustained political commitment. But the direction is clear.
For the first time in decades, India’s nuclear sector has a legal framework that matches its ambitions.
Conclusion: A Strategic Reset for a Clean Energy Future
The SHANTI Bill is not just a reform of laws—it is a reform of intent. It acknowledges that leadership in the 21st-century energy transition requires openness, scale, innovation, and trust.
If implemented faithfully, the Bill could transform nuclear power from a marginal contributor into a central pillar of India’s clean energy strategy—and position the country as a global hub for safe, affordable, and advanced nuclear technology.